Analyst Estimates: Here's What Brokers Think Of Wacker Chemie AG (ETR:WCH) After Its Half-Yearly Report

It's been a mediocre week for Wacker Chemie AG (ETR:WCH) shareholders, with the stock dropping 10% to €64.00 in the week since its latest half-year results. It was an okay result overall, with revenues coming in at €1.4b, roughly what the analysts had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Wacker Chemie's 13 analysts currently expect revenues in 2025 to be €5.69b, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 59% to €1.11 in the same period. Before this earnings report, the analysts had been forecasting revenues of €5.72b and earnings per share (EPS) of €1.41 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

Check out our latest analysis for Wacker Chemie

The consensus price target held steady at €78.21, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Wacker Chemie analyst has a price target of €113 per share, while the most pessimistic values it at €52.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Wacker Chemie's revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2025 being well below the historical 3.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Wacker Chemie.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Wacker Chemie's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €78.21, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wacker Chemie. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Wacker Chemie going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Wacker Chemie that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.